NEW YORK CITY –US stocks tumbled early and then stayed in the red for the remainder of the day.
Notably, Tuesday marked the first time since October 11, 2016 that the S&P 500 closed down by over 1%.
Within the index, the financials sector had a particularly rough day, falling by about 2%. Bank of America was down by over 5%.
First up, the scoreboard:
- Dow: 20,660.46, -245.40, (-1.17%)
- S&P 500: 2,342.26, -31.30, (-1.31%)
- Nasdaq: 5,792.55, -108.89, (-1.85%)
- US 10-year yield: 2.428%, -0.044
- WTI crude: $US48.31, -0.60, (-1.23%)
1. Speaking of stocks, investors haven’t been this pumped about them since right before the financial crisis. Deutsche Bank’s Chief International Economist Torsten Sløk shared a chart showing that markets are currently pricing less than 10% probability of a bear market over the next 12 months – and an even smaller probability over the next six months.
2. The GOP Obamacare replacement bill is quickly becoming a “universally detested piece of legislation.” According to Nate Silver at FiveThirtyEight, the most recent six polls from firms such as Fox News, Morning Consult, and YouGov/CBS News showed that an average of 30% of Americans support the American Health Care Act, while 47% of people surveyed were against it.
3. President Donald Trump on Tuesday threatened political fallout if House Republicans did not pass the GOP leadership’s bill to overhaul the US healthcare system.
“I honestly think many of you will lose your seats in 2018 if you don’t get this done,” Trump told the representatives, according to Politico’s John Bresnahan and CNN’s Phil Mattingly.
4. The dollar had a bad day. The US dollar index was down by about 0.6% at 99.81 in the mid afternoon, and is currently around its lowest level since early February.
5. Morgan Stanley president Colm Kelleher said his firm will definitely move staff out of London within the next two years. “It is the cost of doing business,” Kelleher said when asked about applying for European licenses now.
6. Bitcoin roars back. The crypto-currency was higher for a second straight day on Tuesday, trading up 6.5% at $US1,110 a coin around 2:13 p.m. ET. It has rallied about 17% since Sunday’s low, rebounding from a slump over the weekend.